Skip to main content

  • Comment Detail

  • Date: 10/20/17
    First Name: MATT
    Last Name: CARRUTHERS
    Email: matt@carrutherslawfirm.com
    Organization Type: other
    Organization: Carruthers Law Firm

  • Comment

    I am a shareholder of FNMA and very concerned about my future stake and retirement. I have followed the housing situation since the 2008 meltdown and I have been a conservator in my own law practice. I cannot understand what is being conserved by the current situation with FNMA. The implication is that we as shareholders are getting pushed aside. A government taking of private entities cannot and should not continue, especially with the net worth sweep tht has and is continuing to drain these companies of the capital buffers need to protect the taxpayer whom the government is acting like they wish to protect. This must end and must end in a manner that will benefit the taxpayer and shareholder.

    As required under the Housing and Economic Recovery Act of 2008, FHFA has helped restore the GSEs to a safe and solvent condition, enabling them to continue to provide liquidity and stability in the home loan marketplace. However, changes made in 2012 to the terms of the conservatorship that requires the GSEs to make quarterly dividend payments to the U.S. Treasury will leave the GSEs with no reserve capital beginning January 1, 2018. This is counter to the interest of taxpayers, the rights of GSE shareholders and the public policy goal of access to home finance, regardless of economic cycles.

    The weakening of the GSEs’ financial condition is in direct opposition of HERA’s mandate for FHFA to return the GSEs to solvency. I was under the impression that a conservatorship is to act in a fiducairy capacity to conserve and preserve assets. The current conservatorship is NOT acting like a true legal conservatorship. It is in fact acting the opposite. Also, the current policy undermines a predictable, stable home loan marketplace and affordable housing goals in federal law. In addition, the policy violates the Constitutional rights of the GSEs’ shareholders.

    It is time to end the quarterly dividend payment by Fannie Mae and Freddie Mac and protect taxpayers from having to provide additional support to the GSEs. An eventual exit from the conservatorship must respect the rights of hardworking people who own shares in Fannie and Freddie and create a sustainable mortgage market for future generations of Americans.